Multiple Choice
The figure below shows revenue and cost curves of a natural monopoly firm.Figure 14.1
In the figure,
D: Demand curve
MR: Marginal revenue curve
MC: Marginal cost curve
ATC: Average total cost curve
-Which of the following is a possible reason for governments to regulate business operations?
A) To increase monopoly profits
B) To reduce the amount of information consumers have about a product
C) To increase negative externalities
D) To promote competitive behavior
E) To decrease positive externalities
Correct Answer:

Verified
Correct Answer:
Verified
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